CH. HASSAN NAWAZ (MEMBER).---The appellant retired as Deputy Accountant-General, Punjab, Lahore with effect from 1-7-1977 when the Office Memorandum of 7-1-1977 on the subject of liberalised Pension Rules was in vogue. Para. 2 of this Office Memorandum provided that "while pensions of civil servants will be fixed in accordance with these provisions with effect from the date of their retirement, financial benefits will be paid with effect from 1-2-1977".
2. Para. 3(a) is also in point. It made the following provisions: Pension shall be calculated at the rate of 70% of average emoluments on completion of 30 years qualifying service where qualifying service is less, than 30 years but not less than 10 years, proportionate reduction in percentage shall be made. Any amount of pension in excess of Rs.1,000 shall be reduced be 50%.
3. On retirement, the appellant's pension was fixed at Rs.976.79 per month which, due to change in his emoluments was subsequently raised to Rs.1,244,68 and Rs.1,346.30 through Pension Payment Order No. 8590/Pak, 14666/Pak and 17269/Pak respectively. However, the actual amounts paid to him were Rs.1,122,34 and then Rs.1,173.15 after 50% reduction of the amount in excess of Rs.1,000 as laid down in the abovementioned para. 3(1) of the O.M. Of 7-1-1977.
4. The Pension' Rules were further liberalised by the Government of Pakistan (Finance Division) through O.M. Dated 28-6-1980 which is reproduced below: "Subject:Further Liberalisation of liberalised Pension Rules for civil servant The undersigned is directed to state that further liberalisation of existing pensionary benefits has been under the consideration of Government of Pakistan for sometime past. It has now been decided that with effect from 1-7-1980 the amount of pension in excess of Rs.2,000 (instead of Rs.1,000) shall be reduced by 50%. Therefore, the figure of Rs.1,000 shall be substituted by the figure of Rs.2,000 referred to para. 3(a) of the Finance Division Office Memo. No.F.6(1)-Rev-1/75, dated the 7th January, 1977 and in the note below the Revised Pension Table of Annexure, thereto.
2. It has also been decided that when the enhancement of the cut off point to Rs.2,000 as mentioned in para. 1 above results in no increase of less than Rs.40 in the pension. It shall be so determined that a minimum benefit of Rs.40 p.m. Is ensured.
(Sd.)
Muhammad Izhar Khan, Deputy Secretary."
5. After issuance of this O.M. The appellant addressed a representation to the Accountant-General, Pakistan Revenues, Lahore on 22-12-1981. In this representation he asked for the enhancement of the pension with effect from 1-7-1980 in accordance with the provisions of O.M. Dated 28-6-1980.
His case was that the amount of pension should be revised without any reduction with effect from 1-7-1980 because of the enhancement of the cut off point to Rs.2,000. He was informed through letter dated 21-1-1982 that his request could not be granted because the benefit of O.M. Dated 28- 6-1980 raising the cut off point to Rs.2,000 was available only to persons retiring on or after 1-7- 1980.
6. He challenged the validity of department's decision in a Writ Petition (No. 1219 of 1982) before the High Court, which was ultimately dismissed by order dated 24-10-1993 for want of jurisdiction in view of the provisions of Article 212 of the Constitution. He promptly addressed a representation to the Auditor-General of Pakistan on 28-10-1993 where it was prayed that the A.G.P.R., Lahore Office be directed to revise his pension in pursuance of the Government orders. After having failed to get any response he came to the Tribunal with the present appeal under section 4 of the Service Tribunals Act, 1973 where the prayer is for the direction to the respondent to revise his pension with effect from 1-7-1980 without any reduction, with arrears for the period from 1-7-1980 to 3-6-1985.
7. The respondents have defended the impugned order by pleading that the orders regarding raising of cut off point from Rs.1,000 to Rs.2,000 issued by the Finance Division were effective from 1- 7-1980 and not applicable to the appellant's case who had retired earlier on 1-7-1977. It was pleaded that his demand for revision of pension was against the spirit of rules and orders on the subject, and that his pension is to be governed by the rules in force at the time of retirement.
8. We hold the view that the appellant's claim enhancement of pension with effect from 1-7-1980 is not without substance. There is no ambiguity in the provisions of O.M. Dated 28-6-1980. The decision borne out by it is that with effect from 1-7-1980 the amount of pension in excess of Rs.
2,000 instead of Rs.1,000 shall be reduced by 50%. There is absolutely nothing whatsoever in these provisions to indicate that this decision applied only to those pensioners who retired either on or after 1-7-1980. The cut off point was raised from Rs.1,000 to ,Rs.2,000 with effect from 1-7-1980 and the amount of pension was thenceforth to be reduced by 50% after it exceeded to Rs. 2,000. There is nothing in the expression "amount of pension" to suggest that it was only of those pensioners who retired on or after 1-7-1980 and not of those who had retired before that date. The provisions of this O.M., as we see, were applicable to the amount of pension, whether it was of those who had retired before 1-7-1980 or who retired on or after that date. In this view of the matter, even the pension obtained by the appellant was "the amount of pension" within the meaning of O.M dated 28-6-1980 and he was thus entitled to the consequential benefits with effect from 1-7-1980.
9. Another aspect is worth notice. The O:M. Provides that" therefore the figure of Rs. 1,000 shall be substituted by the figure of Rs.2,000 referred to para. 3 (a) of the Finance Division O.M. No. F.6(1)
Rev-1/75, dated 7-1-1977. It is clear that the provisions of O.M. Dated 7-1-1977 were substituted by those of O.M. Dated 28-6-1980. This being a case of substitution, the liberelisation brought about by O.M. Dated 28-6-1980 will be deemed to have taken effect from 7-1-1977 in respect of the pensioners who retired before 1-7-1980. In accordance with these provisions, the cut off point of Rs.2,000 will be taken to have always been there from 7-1-1977.
10. The provisions of para. 2 of this O.M. Are also worth notice. It says that it has "also been decided that when the enhancement of the cut off point to Rs.2,000 as mentioned in para. 1 above results in no increase or an increase of less than Rs.40 in the pension. It shall be so determined that a minimum benefit of Rs.40 p.m. Is ensured". These provisions are indicative of the fact that there is an increase in the pension of those who had already retired before 1-7-1980. The word "increase" is evidently indicative of the fact that the increase was in the pension already being paid and not only to the one which was to be paid in future after 1-7-1980.
11. Further, as we look upon the whole thing, the basic consideration in view of the Government while liberalising the pension Rules, was proportionate increase in the costs of living. If this be so, there is no reason why the benefits should not-be taken to have applied and extended to those who had already retired and were in receipt of pension. If expressed in a different manner, the basic consideration was the reduction of the value of currency. It goes without saying that this reduction affected not only the pensioners of post 28-6-1980 period but also to those who had retired before that date.
12. In support of the view taken by us reliance may be placed on the High Court's judgment in Ch. Qader Bakhsh v. A.-G., Punjab (1981 PLC (C.S.) 573 and the Division Bench ruling of the same Court in I.C.A. No. 212-A of 1981, on appeal by Accountant-General, Punjab against High Court Single Bench judgment (PLD 1983 Lah. 246). The Supreme Court's ruling in IA. Sherwani and others v. Government of Pakistan (1991 SCMR 1041) may also be relied upon in support. We do not feel inclined to agree with the respondents contention that the provisions of O.M. Dated 26-8-1980 were not applicable to the case of appellant because he had already retired on 1-7-1977.
13. For the abovementioned reasons, the appeal is accepted and the respondents are directed to revise the appellant's pension with effect from 1-7-1980 without any reduction on the basis of O. M.
Dated 28-6-1980. They are also directed to pay the arrears of pension accruing as a result of the enhancement for the period from 1-7-1980 to 30-6-1985. There will be no order as to costs.